The latest changes will push taxes to their highest-ever sustained share of the UK economy, according to IFS research economist, Isabel Stockton, meaning that workers and businesses will be paying more of their income in taxes than ever before.
새로운 “Health and Social Care Levy” unveiled Tuesday will raise almost £36 billion ($ 49.5 십억) over the next three years through an increase in national insurance contributions. National insurance is paid by the vast majority of workers in the United Kingdom — usually through an automatic salary deduction — and it qualifies them for certain social benefits and state pensions.
Under the plan, national insurance contributions will be increased by 1.25 percentage points for both employers and employees, amounting to a 2.5 percentage point increase on payroll taxes.
According to Johnson, the highest earning 14% of the population will pay around half of the revenue raised, 와 40% of small businesses and those earning less than £9,568 ($ 13,172) 년 not paying anything extra at all.
아직도, workers will “overwhelmingly” bear the brunt of the new tax burden, with very little coming from pensioners, according to the IFS.
“This is the latest in a long line of reforms which have tilted the burden of taxation towards the earnings of working age people and away from the incomes of pensioners,” said Tom Waters, a senior research economist at the IFS.
The money is intended to fix a longstanding funding crisis in health and social care, both of which face increased demand from an aging population.
Johnson described the plan as “the biggest catch-up program in the history of the [National Health Service],” which is grappling with a chronic backlog of non-essential treatments that has been made worse by the coronavirus pandemic.
While a portion of the funds has been earmarked for social care, the IFS on Wednesday cautioned that four decades of experience shows that NHS spending plans are “almost always topped up.”
“If history repeats itself, the ‘temporary’ increases in NHS funding announced this week could end up permanently swallowing up the money raised by the tax rise, leaving little available for social care,” 그것은 추가했다.
UK government spending coming out of the pandemic is set to reach a record peacetime level, according to the IFS.